I. The family business is a mixed ownership, whereas the family, as
a group, is a mandatory royalty-owner, and more than one
family member as individuals, co- owners or involved in
business, and “familiness” or family capital affects the
decision-making in the enterprise. It reveals as an enterprise
of any size, and legal form, listed or not listed.
II.
The majority of the decision-making rights in a family
business may be in the possession of:
a. The natural person(s) who established the firm has/have the
intention to keep the majority of shareholding rights or control for
the family and its members, aiming at its longevity amongst
offspring, or b. The family as a group, and individuals, natural
person(s), as family member(s) who has/have acquired the
shared-capitals by inheritance, or succession, bequest, donation or
purchasing, or
c. A “legal person” or “a patrimony by affectation” owned and/or
run by family members who have the intention to keep the majority
of shareholding rights or control for the family and its members,
aiming at its longevity amongst offspring.
III. The “intuitu familiae” reveals as the main concern for family
members to join the family business.
IV. The “affectio societatis familiaris” describes the common will
of family members to share the ownership of the family
business.
V.
The family business governance is of two-fold: The family
governance and Business governance. At least one
representative of the family is formally involved in the
business governance.
VI.
At least one family member or a representative of the family
shall be involved in the business management.
While the “farming assets” of the family farm corporation were
limited to the financial and physical assets by including:
⁃
(a) Land, buildings, equipment, machinery, and livestock that are
used chiefly in farming by the corporation,
⁃ (b) Any right or license granted or issued under any Act of the
Legislature that permits or regulates the production or sale of
any commodity or thing produced, raised or grown through
farming,
⁃
(c) The building in which a shareholder or one or more members of
his or her family reside who are engaged in farming if that
building is on land that is used or is contiguous to land used in
farming by that shareholder or those members of his or her
family,
⁃
(d) Shares in another family farm corporation, and
⁃ (e) Trade accounts receivable, supplies, and inventory of
commodities or things produced, raised, or grown through
farming;
⁃
However, it is worth noting, according to this regulation, the
legislator enlarges the definition of the family by including
⁃
“with respect to an individual (a) the individual, (b) the
individual’s spouse, (c) the individual’s child, (d) the individual’s
father, mother, brother or sister or any spouse or descendant of such
brother or sister, (e) the brother or sister of the individual’s father or
mother or any descendant of any such brother or sister, (f) the father,
mother or any brother or sister of the individual’s spouse or any
descendant of any such brother or sister, (g) the individual’s
son-in-law or daughter-in-law, (h) the individual’s grandfather or
grandmother, (i) the individual’s grandchild or great-grandchild or the
spouse of any such grandchild or great-grandchild, or (j) a corporation
all of the issued shares of which except for directors’ qualifying
shares are owned by an individual or individuals, each of whom is
⁃
related to the individual to whom the expression is being applied in
the manner described in any of clauses (a) to (i);963
⁃